ICRA assigns LAAA rating to SBT

Mumbai , May 23 (UNI) Rating agency ICRA today assigned LAAA rating to the Rs 2.50 billion Lower Tier 2 subordinated bonds programme promoted by State Bank of Travancore (SBT).

The rating, which factors in bank's superior core earnings and lowest credit risk to the SBT's programme, has also recognised the risks associated with SBT's relatively Low Tier 1 capitalisation while assigning the top rating.

SBT, in which parent organisation state bank of India (SBI) holds 75 per cent stakes, has a strong retail presence in Kerala where 562 of its total 690 branches are located.

The ratings has taken into account the operational and management synergies between SBT and SBI in the areas of banking operations.

The bank had posted a 35 per cent increase in operating profits for the year ended March 31. The capital adequacy ratio of the bank is at 11.68 per cent while the net non performing assets (NPA) ratio stood at 1.08 per cent.

SBT customers has access to 5500 ATMs in the country that include SBI ATMs.

UNI